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Mortgage Qualifier Tool

This calculator helps you determine whether or not you can qualify for a home mortgage based on income and expenses.

To qualify for a mortgage loan at a bank, you will need to pass a “stress test”. You will need to prove you can afford payments at a qualifying interest rate which is typically higher than the actual rate in your mortgage contract.

Credit unions and other lenders that are not federally regulated do not need to use this mortgage stress test.

The qualifying interest rate your lender will use for the stress test depends on whether you need to get mortgage loan insurance.

If you need mortgage loan insurance, the bank must use the higher interest rate of either:

Property Information

This is the amount you expect to borrow from your financial institution. It may include the purchase price of your home plus the mortgage loan insurance.

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Down Payment

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Please specify how much you would like to consider as down payment. Please note that it is assumed the down payment is not borrowed.

The minimum down payment is 5% for the first $500,000, 10% for the portion of the house price above $500,000 up to 1 million dollars and 20% for any house price over 1 million dollars.

This tool does not include mortgage loan insurance when you have a down payment of 20% or more or when the property value is $1 million or more. Please note that in some situations, you may be required to get mortgage loan insurance, even if you have a down payment of 20% or more. For example, if you’re self-employed or have a poor credit history.

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Annual Interest Rate

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Annual interest rate for this mortgage.

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Amortization Period

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The number of years and months over which you will repay this loan. The most common amortization period is 25 years. Not to be confused with the term of your loan, which is the duration of the loan agreement you signed with your financial institution and that has to be renewed regularly. Terms are generally for 1 to 10 years.

Payment Frequency

By choosing an accelerated payment frequency, you can reduce your amortization period and save thousands of dollars in interest in the long run. For example, the accelerated bi-weekly payment allows you to pay half of your monthly payment every two weeks. You will therefore make 26 payments a year, the equivalent of one extra monthly payment a year.

Term

The number of term years.

Your Income and Anticipated Expenses

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Your Gross Income

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Please specify your yearly or monthly gross income. This value should be the total of the household income if you are buying the property with a partner.

If you have sources of income other than a salary, ask your lender if they will include these sources for mortgage qualification. For example, self-employment income, commissions, bonuses, tips, investments, rental income, spousal and child support payments, disability insurance payments, etc.

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Heating Cost

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Please enter an estimated value of heating cost for the property you intend to buy. Heating costs usually represent 1% of the value of the home.

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Property Taxes

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Please enter an estimated value of taxes you would pay for the property you intend to buy.

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Credit Card / Line of Credit Payments

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Please enter the total monthly or yearly value of credit card or line of credit payments. This value should be the total of your payments as well as your partner payments if you are buying the property with a partner.

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Car Payments

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Please enter your monthly or yearly value of car payments. This value should be the total of your payments as well as your partner payments if you are buying the property with a partner.

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Other Debt Payments

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Please enter your monthly or yearly value of other payments. This value should be the total of your payments as well as your partner payments if you are buying the property with a partner.

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We offer this mortgage calculator as a self-help tool for your use. This tool does not replace professional financial advice. We cannot guarantee that this calculator will apply or be accurate in your situation. For example, your mortgage lender may make its calculations in a different way. All calculations are examples only.